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<br /> . . . <br /> '. <br /> . . <br /> I Underlying Revenue Assumptions <br /> .- Revenues for the facility are expected to come from the rental of ice time. Each of five parties <br /> to a Master Agreement are anticipated to guarantee a minimum usage of 2,080 hours annually <br /> . at an initial rate of $125 per hour. At this rate, annual ice rental income of $1.300,000 is <br /> guaranteed. <br /> As consideration for the role MASC plays in operating the facilities and providing for certain <br /> . operating guarantees, the Master Agreement calls for all concession income and expense to <br /> accrue to MASC. Reflecting this, the revenue assumptions (and expenses shown) do not <br /> include any amounts for concessions or merchandise sold. Clarification should be <br /> . incorporated into the Master Agreement as to what the term "concessions" includes and does <br /> not include. The budget suggests that concessions includes food and vending sales. video <br /> game receipts, pro shop merchandise, advertising, admission receipts, skate sharpening and <br /> equipment rental. <br /> . <br /> Ice Rental Hours <br /> . Prime time rental hours generally cover a period of time from school dismissal in the afternoon <br /> until 10:00 p.m. Monday through Thursday, slightly later on Friday, and all day Saturday and <br /> . Sunday. Approximately 67 hours are available weekly. Assuming a down time of two weeks <br /> per rink for maintenance, four rinks for fifty weeks per year would have 13,400 hours of prime <br /> time available. Of these hours, 10,400. or 78% are covered by the guarantee. <br /> .e Ice Rental Rates <br /> . Appendix III contains a listing of ice arenas surveyed by M.I.A.M.A. and their 1995-1996 ice <br /> rental rates as reported. The average prime time rental rate for the metro rinks reporting is just <br /> over $108 per hour. For those ice arenas in the immediate service area of the proposed <br /> facility, the rates range from $50 to $115. Guarantors of the proposed facility have area ice <br /> . rinks that report the following ice rental rates: <br /> . Blaine - Fogerty $95.00 <br /> Coon Rapids - Cook 95.00 <br /> Anoka County - Columbia 95.00 <br /> . Forest Lake - Maroon & Gold 100.00 <br /> Centennial Sports Arena 50.00 <br /> . <br /> . <br /> . <br /> .e <br /> . DRAFT REPORT 5/30/96 Page 2 <br />